What Is A Sponsorship Agreement?
As digital content creation has grown across online platforms, sponsorship agreements have become more prevalent. As a content creator, actor, musician, or company, sponsorship opportunities may begin to present themselves, and it is crucial to understand sponsorship terms and conditions and learn how to best protect your likeness, intellectual property, and other work and products.
The basic sponsorship agreement definition refers to any agreement between two parties that outlines terms of one party providing a monetary or similar reward to another party for promoting a product or service of the other. A sponsorship agreement or contract may be either verbal or written, however, our attorneys always recommend documenting an agreement in writing to ensure all parties are on the same page and understand the specifics of the deal.
How To Write A Sponsorship Contract
While determining the terms of a sponsorship agreement, there are several terms that must be outlined for maximum transparency. First and foremost, the timeline of the agreement must be clearly established. This portion of an agreement often includes the timeline for which the contract will be valid, renewal date options, or automatic renewal if some conditions are met. For example, a contract may read that the sponsorship between a company and a basketball athlete will be relevant for six months with the option to extend the sponsorship another two months on the expiration date, or an automatic renewal any time the team advances in a playoff game.
Another term to consider when writing a sponsorship contract is whether or not the agreement will be exclusive. This establishes whether or not the sponsored party will be able to be sponsored by more than one sponsor for a given area or time. This is an important consideration to make as exclusivity is more beneficial for a sponsor. In addition, the agreement must clearly state the means by which and the frequency of payment to the sponsored party. Both parties should agree on a lump sum or the frequency of payment to avoid litigation regarding payment in the future.
Other details to consider in a sponsorship agreement are the obligations in regards to the type of demeanor the sponsor would like their partners to maintain while showing their product, or avoid negative language surrounding the company. These details may also disclose how often the sponsor requires their logo or product to be seen or mentioned by the sponsored party.
Retain Counsel for Sponsorship Agreements
While sponsorships introduce excellent opportunities for the parties involved, it is crucial that sponsorship agreements are written documents that contain as many details about the agreement as possible. For this reason, The Saade Law Firm, P.A. highly recommends consulting with an attorney to oversee the drafting of a sponsorship agreement. Contact The Saade Law Firm, P.A. or give us a call at 786-633-1114 to learn more about our legal sponsorship agreement services.